TCS posts 8.6% sequential growth in net profit in Q2
Tata Consultancy Services (TCS), India’s largest software exporter, on Thursday reported a 8.57 per cent sequential growth in net profits for the quarter ended September 2017 amidst strong revenue growth across verticals.
The company’s net profit for the July-September period stood at `6,460 crore as compared to `5,950 crore in April – June period.
However, when compared to the same period last year, its net profit dropped 2.1 per cent from `6,603 crore.
With the exception of retail and communication & Media industries (CMI), all industry verticals grew above the company average led by travel & hospitality (up 8 per cent QoQ), energy & utilities (up 7.2 per cent) and life sciences and health care (up 3.6 per cent). On an year on year basis, the company said all industry verticals with the exception of BFSI and retail grew above 9.5 per cent.
“We experienced robust volume growth in Q2, driven by good demand across multiple industry verticals. Strong broad based client metrics this quarter demonstrates our increasing success with newer customers. We continue to gain market share in the fast growing digital spend of our customers, evident in our industry leading digital growth in Q2,” said Rajesh Gopinathan, CEO & MD, TCS.
Geography wise, the growth was led by Europe (up 5.3 per cent QoQ), Latin America (up 5.7 per cent), Asia Pacific (up 3 per cent) and UK (up 2.5 per cent. The company added that North America grew by just 1.4 per cent with continued softness in banking and retail.
The company’s total employee strength at the end of Q2 stood at 3,89,213 on a consolidated basis with gross addition of 15,868 employees and net addition of 3404 employees during the quarter. TCS hired 3725 employees outside India taking their total strength to 6979 in the first half of the fiscal year.
On Thursday, the shares of TCS soared close to 2 per cent on the BSE ahead of its results announcement.